Oracle Financial Services Software Inc.

Transcription

1 To the Members, Oracle Financial Services Software Inc. Directors Report Your Directors are pleased to present the Annual Report on the business and operations of your company, together with the accounts for the year ended 31 st March, FINANCIAL PERFORMANCE (Rs. in lakhs) For the year ended March 31, Total Income Profit/(Loss) during the period before Depreciation (203.09) and tax Depreciation (402.93) (531.86) Provision for Tax (53.60) (883.96) Net Profit/(Loss) during the period carried over to Balance Sheet ( ) OPERATIONS The amount shown as Total Income consists of Product licenses and related activities, IT solutions and consulting services, Interest earned on Fixed Deposits with Banks. The company s revenue showed a negative growth of 8%. The company s Gross Block (Fixed Assets) grew by 2.91% from Rs Lacs to Rs Lacs. DIVIDEND Your directors do not recommend a dividend for the year ended 31 st March, CAPITAL Your company is a wholly owned subsidiary of Oracle Financial Services Software America Inc. The Company has no subsidiary company.

2 BUSINESS OVERVIEW: After a long drawn Global Slowdown which impacted almost every line of business world-wide, we seem to be seeing some signs of recovery, specially in India. While the US and European markets continue to be bearish with little or no growth, there are signs of recovery in some of the Asian markets centered around China and India. The global meltdown did slow down our company s growth, as most of the prospects / company s were not ready to invest in any new venture, upgrade its IT environment; This resulted in a negative growth in both the revenues and margins of the company. Oracle Financial Services Software Inc is a subsidiary of Oracle Financial Services Software America, Inc. ( Oracle ) with Oracle holding 100% ownership interest in the Company as at March 31, 2010 is a world leader in providing IT solutions to the financial services industry. The Company is principally engaged in the business of providing information technology solutions to the financial services industry worldwide. With the experience of delivering value-based IT solutions to over 880 financial institutions in over 130 countries, Oracle Financial Services Software Inc. understands the specific challenges that financial institutions face: the need for building customer intimacy and competitive advantage through cost-effective solutions while, simultaneously, adhering to the stringent demands of a dynamic regulatory environment. We offer financial services institutions the world's most comprehensive and contemporary banking applications and technology footprint that addresses their complex IT and business requirements. Our mission is to enable financial institutions to excel through the effective use of information technology. FIXED DEPOSITS During the financial year , the Company has not accepted any fixed deposits within the meaning of Section 58 A of the Companies Act, 1956, and as such no amount of principal or interest was outstanding as on the date of the Balance Sheet.

3 DIRECTORS RESPONSIBILITY STATEMENT: As required under Section 217 of the Companies Act, 1956 the Directors hereby confirm that: i) In the preparation of the annual accounts, the applicable accounting standards had been followed along with proper explanation relating to material departures; ii) iii) iv) The Directors have selected such accounting policies and applied them consistently and made judgments and estimates that are reasonable and prudent so as to give a true and fair view of the state of affairs of the Company as at the end of the financial year and of the profit of the Company for that period; The Directors have taken proper and sufficient care for the maintenance of adequate accounting records in accordance with the provisions of this act for safeguarding the assets of the Company and for preventing and detecting fraud and other irregularities; The Directors have prepared the annual accounts on a going concern basis. ACKNOWLEDGEMENTS: Your Directors wish to thank its strategic alliance partners, service providers, hardware and other government and regulatory authorities for their support, guidance and co-operation. Your Directors also wish to place on record their sincere appreciation of the dedicated efforts put in by the employees of the Company during the year. For and on behalf of the Board Sajal Mukherjee Director May 7, 2010

4 BALANCE SHEET AS AT MARCH 31, 2010 March 31, 2010 March 31, 2009 SOURCES OF FUNDS Shareholders' funds Reserves and surplus 1 545, , , ,219 APPLICATION OF FUNDS Fixed assets 2 Cost 799, ,726 Less: Accumulated depreciation and amortisation 239, ,747 Net book value 559, ,979 Current assets, loans and advances 3 Sundry debtors 7,417,908 9,176,283 Cash and bank balances 387, ,632 Other current assets 693, ,425 Loans and advances 368, ,440 8,867,716 10,560,780 Less: Current liabilities and provisions 4 Current liabilities 9,089,568 10,971,697 Provisions 29,666 30,222 9,119,234 11,001,919 Net current assets (251,518) (441,139) Profit & Loss account 236, ,379 Notes to accounts , ,219 The schedules referred to above and notes to accounts form an integral part of the balance sheet.

5 PROFIT AND LOSS ACCOUNT FOR THE YEAR ENDED MARCH 31, 2010 March 31, 2010 March 31, 2010 Revenue 5 7,875,860 8,536,274 Cost of revenue 6 (6,443,870) (7,065,257) Gross profit 1,431,990 1,471,017 Operating expenses Selling and marketing expenses 7 (724,175) (973,792) General and administrative expenses 8 (459,624) (455,658) Depreciation and amortisation (40,293) (53,186) Income from operations 207,898 (11,619) Non-operating income (expenses) Interest Income 9,650 16,843 Other income (expenses), net 10 (38,628) (78,719) Income before provision for taxes 178,920 (73,495) Provision for taxes Current tax (5,360) (88,396) Net income for the year 173,560 (161,891) Profit and loss account, beginning of the year (410,378) (248,488) Surplus carried to Balance Sheet (236,818) (410,378) Notes to accounts 11 The schedules referred to above and notes to accounts form an integral part of the profit and loss account.

6 Schedule 1: Reserves & Surplus Oracle Financial Services Software Inc. Schedules annexed to and forming part of the accounts as at March 31, 2010 March 31, 2010 March 31, 2009 Securities premium Balance, beginning of the year 639,359 - Received during the year - 639,359 Balance, end of the year 639, ,359 Foreign currency translation reserve Balance, beginning of year (94,140) - Addition during the year on net investment in Non integral operations - (94,140) Balance, end of the year (94,140) (94,140) 545, ,219

7 Schedules annexed to and forming part of the accounts as at MARCH 31, 2010 Schedule 2: Fixed assets 13,128 Particulars April 01, 2009 Additions Sale/ deletions Gross block Depreciation, amortisation and Impairment Net book value Translation For the year Sale/ loss Mar 31, 2010 April 01, 2009 deletions Mar 31, 2010 Mar 31, Tangible assets: Improvement to leasehold premises 145,863 12, ,836 56,341 15,669-72,010 86,826 89,522 Computer equipments Owned 81,009 8, ,549 67,181 13,128-80,308 9,240 13,829 Office equipments 11, ,044 3,758 1,803-5,561 6,484 8,133 Furniture and fixtures Owned 61,508 3,084 2,116-62,475 22,337 9,694 1,598 30,433 32,043 39,171 Intangible assets: Goodwill 476, ,455 51, , , ,325 Total 776,726 24,757 2, , ,747 40,293 1, , , ,979

8 Schedules annexed to and forming part of the accounts as at March 31, 2010 Schedule 3: Current assets, loans and advances a. Sundry debtors (unsecured) March 31, 2010 March 31, 2009 Debts outstanding for a period exceeding six months: Considered good - - Considered doubtful 427, , , ,493 Other debts - considered good 7,208,563 9,176,283 7,636,055 9,603,776 Less: Provision for doubtful debts (218,147) (427,493) 7,417,908 9,176,283 b. Cash and bank balances Cash in hand Balances with non-scheduled banks: Current accounts in foreign currency 387, , , ,632 c. Other current assets Unbilled Debtors 693, ,425 Contract work in progress , ,425 d. Loans and advances (unsecured, considered good) Premises and other deposits 31,976 39,194 Prepaid expenses 27,778 9,320 Advance tax, net of provision for taxes 56,770 46,503 Loan to subsidiaries 234, ,339 Other advances 18,077 10, , ,440

9 Schedules annexed to and forming part of the accounts as at March 31, 2010 Schedule 4: Current liabilities and provisions a. Current liabilities March 31, 2010 March 31, 2009 Accrued expenses 261, ,177 Deferred revenues 298, ,021 Accounts payable 6,675 23,199 Advances from customers 2, ,866 Amount due to Subsidiaries 8,432,283 9,894,231 Other current liabilities 88, ,203 9,089,568 10,971,697 b. Provisions Provision for compensated absence 29,666 30,222 29,666 30,222

10 Schedule 5: Revenue March 31, 2010 March 31, 2009 Product licenses and related activities 2,810,749 3,275,755 IT solutions and consulting services 5,065,111 5,260,519 7,875,860 8,536,274 Schedule 6: Cost of revenue Employee costs 5,808,324 6,008,765 Travel related expenses (net of recoveries) 25,003 92,307 Professional fees 580, ,861 Application software 30,442 10,324 6,443,870 7,065,257 Schedule 7: Selling and marketing expenses Oracle Financial Services Software Inc. Schedules annexed to and forming part of the accounts as at March 31, 2010 Employee costs 549, ,950 Professional fees 6,303 59,474 Travelling expenses 63,563 83,620 Advertising expenses 28,533 21,780 Rent 31,344 33,091 Communication expenses 14,961 21,084 Provision for doubtful debts (182,976) 199,054 Other expenses 213,244 37, , ,792 Schedule 8: General and administrative expenses Employee costs 176, ,366 Professional fees 54,903 62,922 Rent 88,102 85,252 Communication expenses 61,107 64,005 Power 16,065 14,844 Travelling expenses 7,315 6,850 Application Software 1,805 2,982 Other expenses 54,243 39, , ,658 Schedule 9: Interest income Interest on: Bank deposits 434 3,550 Intercompany Interest 9,216 13,292 Income tax refund - 1 9,650 16,843 Schedule 10.: Other income (expenses) Foreign exchange gain (loss), net (42,469) (52,402) Profit on sale of fixed assets, net (518) (30,786) Miscellaneous income 4,359 4,469 (38,628) (78,719)

11 Schedules annexed to and forming part of the accounts for the year ended March 31, 2010 (Amount in thousands of Indian Rupees) Schedule 11: Notes to accounts 1. Background and nature of operations Oracle Financial Services Software Inc ( OFSS or the Company ) was incorporated in US with limited liability on December 1, OFSS is a subsidiary of Oracle Financial Services Software America, Inc. holding 100% ownership interest in the Company as at March 31, The Company is principally engaged in the business of providing information technology solutions to the financial services industry worldwide. 2. Summary of significant accounting policies (a) Basis of presentation The financial statements are prepared in accordance with accounting principles generally accepted in India under the historical cost convention on the accrual basis of accounting and complying in all material respects with the notified Accounting Standards by Companies (Accounting Standards) Rules, 2006 and the relevant provisions of the Companies Act, 1956 ( the Act ). The financial statements have been prepared using uniform accounting policies for like transactions and other events in similar circumstances. The accounting policies have been consistently applied by the Company and are consistent with those used in the previous years, except for the changes in accounting policies described in note (c) below. The financial statements are presented in the general format specified in Schedule VI to the Act. The significant accounting policies adopted by the Company, in respect of the financial statements are set out below. (b) Use of estimates The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent liabilities at the date of the financial statements and the results of operations during the reporting year end. Although these estimates are based upon management s best knowledge of current events and actions, actual results could differ from these estimates. (c) Change in Accounting Policy of revenue recognition for fixed price contracts In the current year, the Company has changed (with retrospective effect) it s method of recognizing revenue pertaining to fixed price contracts. The revenue has been recognized using proportionate completion method till contract reaches 90% completion. Balance revenue is recognized at the time of receipt of customer acceptance. Hitherto, such revenue was restricted to the lower of proportionate completed efforts and acceptance received from the customer for the milestone achieved. (d) Fixed assets, depreciation and amortization Fixed assets including assets under finance lease arrangements are stated at cost less accumulated depreciation. The Company capitalizes all direct costs relating to the acquisition and installation of fixed assets. Advances paid towards the acquisition of fixed assets outstanding at each balance sheet date and the cost of fixed assets not ready to use before such date are disclosed under Capital work-in-progress and advances. Customer contracts and product Intellectual property rights (IPRs) are capitalized based on a fair value. The Company records the difference between considerations paid to acquire these contracts and the fair value of assets and liabilities acquired as goodwill.

12 Schedules annexed to and forming part of the accounts for the year ended March 31, 2010 (Amount in thousands of Indian Rupees) The Company purchases certain specific use application software, which is in ready to use condition, for internal use. It is estimated that such software has a relatively short useful life, usually less than one year. The Company, therefore, charges to income the cost of acquiring such software. The Company computes, depreciation and amortization using straight-line method, at the rates specified in Schedule XIV to the Act or based on the estimated useful life of assets, whichever is higher. All other entities in the company including associate, compute depreciation and amortization using straight line method based on estimated useful life of the assets. The estimated useful life considered for depreciation of fixed assets is as follows: Asset description Asset life (in years) Tangible assets Improvement of leasehold premises Lesser of 7 years or lease term Buildings 20 Computer equipments 3 Electrical and office equipments 2-7 Furniture and fixtures 2-7 Vehicles under finance lease Lesser of 3 to5 years or lease term Intangible assets Goodwill on acquisition 3 to 5 Customer contract 5 Product IPR 5 PeopleSoft ERP 5 The carrying amounts of assets are reviewed at each balance sheet date if there is any indication of impairment based on internal/external factors. An impairment loss is recognized wherever the carrying amount of an asset exceeds its recoverable amount. The recoverable amount is the greater of the assets net selling price and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value at the weighted average cost of capital. After impairment, depreciation is provided on a revised carrying amount of assets over its remaining useful life. (e) Investments Investments that are readily realisable and intended to be held for not more than a year are classified as current investments. All other investments are classified as long-term investments. Trade investments refer to the investments made with the aim of enhancing the Company s business interests in providing information technology solutions to the financial services industry world wide. Long term investments are stated at cost less provision for diminution on account of other than temporary decline in the value of the investment. Current investments are stated at lower of cost and fair value determined on an individual investment basis. (f) Foreign currency transactions Foreign currency transactions during the year are recorded at the exchange rates prevailing on the date of the transaction. Foreign currencies denominated monetary items are translated into reporting currency at the closing rates of exchange prevailing at the date of the balance sheet. Non-monetary items, which are

13 Schedules annexed to and forming part of the accounts for the year ended March 31, 2010 (Amount in thousands of Indian Rupees) carried in terms of historical cost denominated in a foreign currency, are reported using the exchange rate at the date of the transaction. Exchange differences arising on the settlement of monetary items or on reporting company s monetary items at rates different from those at which they were initially recorded or reported in previous financial statement, are recognized as income or as expenses in the year in which they arise except those arising from investments in non-integral operations. In respect of forward exchange contracts entered into by the Company to hedge the foreign currency risk, the premium or discount arising at the inception of forward exchange contracts is amortized as expense or income over the life of the contract. Exchange differences on such contracts are recognized in the statement of profit and loss in the year in which the exchange rates change. Any profit or loss arising on cancellation or renewal of forward exchange contract is recognized as income or as expense for the year. The Company uses foreign currency option contracts to hedge its exposure to movement in foreign exchange rates. Any profit or loss arising on settlement or expiry of option contracts is recognized as income or expense for the year. (g) Revenue recognition Revenue is recognized as follows: Product licenses and related revenue: - License fees are recognised, on delivery and subsequent milestone schedule as per the terms of the contract with the end user. - Implementation services are recognised as services are provided, when arrangements are on a time and material basis. Revenue for fixed price contracts is recognised using the proportionate completion method till contracts reach 90% completion. Balance revenue is recognized at the time of receipt of customer acceptance. Proportionate completion is measured based upon the efforts incurred to date in relation to the total estimated efforts to complete the contract. The Company monitors estimates of total contract revenue and cost on a routine basis throughout the delivery period. The cumulative impact of any change in estimates of the contract revenue or costs is reflected in the period in which the changes become known. In the event that a loss is anticipated on a particular contract, provision is made for the estimated loss. - Customization services are recognized based on the acceptance received from the customer for the milestone achieved. - Product maintenance revenue is recognised, over the period of the maintenance contract. IT solutions and consulting services: Revenue from IT solutions and consulting services are recognised as services are provided, when arrangements are on a time and material basis. Revenue from fixed price contracts is recognized using the proportionate completion method till contracts reach 90% completion. Balance revenue is recognized at the time of receipt of customer acceptance. Proportionate completion is measured based upon the efforts incurred to date in relation to the total estimated efforts to complete the contract. The Company monitors estimates of total contract revenue and cost on a routine basis throughout the delivery period. The cumulative impact of any change in estimates of the contract revenue or costs is reflected in the period in which the changes become known. In the event that a loss is anticipated on a particular contract, provision is made for the estimated loss. Interest income Interest income is recognised on a time proportion basis taking into account the amount outstanding and the rate applicable

14 Schedules annexed to and forming part of the accounts for the year ended March 31, 2010 (Amount in thousands of Indian Rupees) (h) Research and development expenses for software products Research and development costs are expensed as incurred. Software product development costs are expensed as incurred until technological feasibility is established. Software product development costs incurred subsequent to the achievement of technological feasibility are not material and are expensed as incurred. (i) Leases Where the Company is the lessee Lease of assets under which substantially all the risks and benefits incidental to ownership are transferred to the Company are classified as finance leases. These assets are capitalized at the lower of the fair value and present value of the minimum lease payments at the inception of the lease term and disclosed as leased assets. Lease payments are apportioned between the finance charges and reduction of the lease liability based on the implicit rate of return. Finance charges are charged directly against income. Lease management fees, legal charges and other initial direct costs are capitalized Leases of assets under which all the risks and rewards of ownership are effectively retained by the lessor are classified as operating leases. Lease payments under operating leases are recognised as an expense on a straight-line basis over the lease term. Where the Company is the lessor Assets given under a finance lease are recognised as a receivable at an amount equal to the net investment in the lease. Lease rentals are apportioned between principal and interest on the IRR method. The principal amount received reduces the net investment in the lease and interest is recognised as revenue. (j) Income-tax Tax expenses are determined in accordance with tax laws applicable in countries where such operations are domiciled. Advance taxes and provisions for current income taxes are presented in the balance sheet after off-setting advance taxes paid and income tax provisions arising in the same tax jurisdiction and enterprise. (k) Provision and contingencies A provision is recognized when an enterprise has a present obligation as a result of past event and it is probable that an outflow of resources will be required to settle the obligation, in respect of which a reliable estimate can be made. Provisions are not discounted to its present value and are determined based on management estimate required to settle the obligation at the balance sheet date. These are reviewed at each balance sheet date and adjusted to reflect the current management estimates. (l) Cash and cash equivalents Cash and cash equivalents in the balance sheet comprise cash at bank and in hand and short terms investments with an original maturity of three months or less.

15 Schedules annexed to and forming part of the accounts for the year ended March 31, 2010 (Amount in thousands of Indian Rupees) 3. Commitments and contingent liabilities (a) Capital commitments Contracts remaining to be executed on capital account and not provided for (net of advances) aggregates to Nil as at March 31, 2010 (March 31, 2009 Nil). (b) Contingent Liabilities Financial bank guarantees given to banks aggregates to Rs Nil as at March 31, 2010 (March 31, Rs Nil). 4. Leases (a) Where Company is lessee Operating lease The Company has taken certain office premises and residential premises for employees under operating lease, which expire at various dates through year Some of these lease agreements have a price escalation clause. Gross rental expenses for the year ended March 31, 2010 aggregated to Rs. 11,007 (March 31, Rs. 13,145).The minimum rental payments to be made in future in respect of these leases are as follows: March 31, 2010 March 31, 2009 Not later than one year 109, ,116 Later than one year but not later than five years 327, ,848 Later than five years 217, , , ,739 Finance lease Nil (March 31, Rs Nil) (b) Where Company is lessor Finance lease Operating lease Nil (March 31, Rs Nil) Nil (March 31, Rs Nil)

16 5. SEGMENT INFORMATION Oracle Financial Services Software Inc. Notes forming part of the accounts for the year ended March 31, 2010 Business segments are defined as components of an enterprise about which separate financial information is available. This information is reviewed and evaluated regularly by the management, in deciding how to allocate resources and in assessing the performance. The Group is organized geographically and by business segment. For management purposes the Group is primarily organised on a worldwide basis into three business segments: a) Product licenses and related activities ('Products') and b) IT solutions and consulting services ('Services') c) Knowledge Processing Services ('KPO-Services') The business segments are the basis on which the Group reports its primary operational information to management. Product licenses and related activities segment deals with banking software products like the FLEXCUBE suite of products, Reveleus, Microbanker and Daybreak which cater to needs of corporate, retail and investment banking as well as treasury operations and data warehousing requirements. The related activities include enhancements, implementation and maintenance activities.product segment further comprises of casualty insurance carriers which include insurance product and process configuration, policy administration, customer management, billing and claims management. Anti-money laundering and compliance solutions are the new additions to product segment on acquisition of Mantas. IT solutions and consulting services comprise of bespoke software development, provision of computer software solutions and related consulting services arising from such activities. This segment is further sub-divided in the following sub-segments i.e. Business intelligence, Customer relationship management, Brokerage, e-commerce, Internet services and IT and Business consulting. The activities of the joint venture are disclosed as a separate segment. Year ended March 31, 2010 Particulars Products Services Corporate Total Revenue External revenue 2,810,749 5,065,111-7,875,860 Inter-segment revenue Total revenue 2,810,749 5,065,111-7,875,860 Cost of revenue (2,125,557) (4,245,438) (72,874) (6,443,870) Gross profit 685, ,673 (72,874) 1,431,990 Selling and marketing expenses (263,400) (180,283) (280,493) (724,175) General and administrative expenses (253,715) (38,776) (167,133) (459,624) Depreciation and amortisation (23,403) (6,626) (10,264) (40,293) Inter segment expense - Income (loss) from operations 144, ,989 (530,765) 207,898 Interest income 9,650 Foreign Exchange Gain/ (Loss), net (42,469) Other income (expenses), net 3,841 Income before provision for taxes 178,920 Provision for taxes (5,360) Net income 173,560

17 Notes forming part of the accounts for the year ended March 31, 2010 Year ended March 31, 2009 Particulars Products Services Corporate Total Revenue External revenue 3,275,755 5,260,519-8,536,274 Inter-segment revenue Total revenue 3,275,755 5,260,519-8,536,274 Cost of revenue (2,479,374) (4,585,851) (32) (7,065,257) Gross profit 796, ,668 (32) 1,471,017 Selling and marketing expenses (208,861) (376,675) (388,255) (973,792) General and administrative expenses (242,785) (58,989) (153,884) (455,658) Depreciation and amortisation (25,582) (11,459) (16,144) (53,186) Inter segment expense Income (loss) from operations 319, ,544 (558,315) (11,619) Interest income 16,843 Foreign Exchange Gain/ (Loss), net (52,402) Other income (expenses), net (26,317) Income before provision for taxes (73,495) Provision for taxes (88,396) Net income (161,891) Segment revenue and expense: Revenue is generated through licensing of software products as well as by providing software solutions to the customers including consulting services and knowledge process outsourcing services. The expenses which are not directly attributable to a business segment are shown as corporate expenses.

18 Notes forming part of the accounts for the year ended March 31, Aggregate expenses Oracle Financial Services Software Inc. Following are the aggregate amounts incurred on certain specific expenses that are required to be disclosed under Schedule VI to the Act: March 31, 2010 March 31, 2009 Cost of Sales - 94,755 Inter-Company Eliminations 4,814,376 5,047,832 Salaries and bonus 1,387,338 1,473,029 Staff welfare expenses 62,670 60,270 Contribution to Provident and other funds 31,079 30,195 Application software 32,419 13,408 Communication expenses 76,068 85,089 Rent 119, ,344 Advertising expenses 28,340 47,077 Power 22,432 21,151 Insurance (46) 103 Repairs and maintenance: Leasehold premises 2,306 - Computer equipments 19,079 23,840 Others 938 (2,759) Rates and taxes 9,895 (523) Provision for doubtful debts, net (182,976) 199,054 Bad debts 188,392 - Other expenses 40,576 14,367 6,652,332 7,225,230 7 Prior year amounts have been reclassified, where necessary to conform with current year's presentation.

19 STATEMENT OF CASH FLOW FOR THE YEAR ENDED MARCH 31, 2010 March 31, 2010 March 31, 2009 Cash flows from operating activities Income before provision for taxes 178,920 (73,495) Adjustments to reconcile income before provision for taxes to cash used in operating activities : Depreciation and amortization 40,293 71,269 Provision for doubtful debts, net (209,345) 333,417 9, ,191 Changes in assets and liabilities, net of effect of acquisition Decrease in sundry debtors and unbilled revenue 1,770,718 (6,934,562) Increase in loans and advances 10,948 (61,649) Decrease in current liabilities and provisions (1,882,684) 7,057,189 Cash from operating activities (91,150) 392,169 Payment of domestic and foreign taxes (15,626) (64,573) Net cash (used in) / provided by operating activities (106,776) 327,596 Cash flows from investing activities Additions to fixed assets including capital work in progress (24,750) (60,308) Net cash (used in) investing activities (24,750) (60,308) Cash flows from financing activities Net cash provided by (used in) financing activities - - Effect of exchange difference on translation - - Net (decrease) / increase in cash and cash equivalents (131,526) 267,288 Cash and cash equivalents at beginning of the year 518, ,558 Cash and cash equivalents at end of the year (Note 1) 387, ,845 CONSOLIDATED STATEMENT OF CASH FLOW FOR THE YEAR ENDED MARCH 31, 2010 Note 1 : Component of cash and cash equivalent March 31, 2010 March 31, 2009 Cash in hand Balances with non-scheduled banks: Current accounts in foreign currency 387, ,517 Cash and bank balances 387, ,632 Cash and cash equivalents at end of the year 387, ,632